Posted: 03/12/2006 6:25 am Post subject: The beginnings of private rail operations?
Chemical logistics venture growing with rail assist from Wyncoast
KRISSANA PARNSOONTHORN, Bangkok Post
Katoen Natie (Thailand), the local unit of the Belgian logistics provider Katoen Natie, is expanding its chemical logistics centre at Mab Ta Phut Industrial Estate in Rayong to accommodate the growing petrochemical industry.
Fabrice Goetschmann, the company's executive director, said it was building the second logistics centre with total space of 80,000 square metres in Rayong. The 10,000 sq m first phase is already open.
The company's first logistics centre, covering 50,000 sq m, is located in the same industrial estate.
''We will invest the total of 1.3 billion baht to complete the second logistics centre by 2009-10. After that, we will have up to 130,000 sq m,'' he said yesterday.Mr Goetschmann said the company was responding to the growth of the petrochemical industry through new investments by PTT and Siam Cement.
Katoen Natie (Thailand) yesterday signed a five-year contract with Wyncoast Logistics, which will provide rail services between Mab Ta Phut and Laem Chabang Port in Chon Buri. Wyncoast will handle 40,000 containers per year for Katoen Natie, representing 60% of its annual capacity of 70,000 containers.
Koen Cardon, managing director of Katoen Natie Asia, said that at present no chemical products were moved by rail in Thailand, even though rail is safer, 10-15% cheaper and more environmentally friendly than truck transport.
''We should look at the railway mode even though Thailand is making massive investments in road infrastructure. In Europe, roads are prioritised for people traffic while cargo is being pushed toward transport over rail or barges,'' he said.
Once the company's expansion at Mab Ta Put is completed, production volumes will rise to 3,000 containers per day over the next 10 years, compared to 200 containers a day currently.
Noppong Uratjananon, business venture director of Wyncoast Industrial Park Plc, the parent of Wyncoast Logistics, said 75% of its revenue would come from the logistics business next year.
This year, its revenue will miss the target of 80-100 million baht as one big customer returned a large plot of land in the free zone of Wyncoast Industrial Park in Bang Pakong. It has a total of 39,000 sq m of space, of which 8,000 sq m is occupied.
Wyncoast, taken over in 2004 by the Wongsawasdi family and restructured as an industrial-park operator, was formerly known as Capetronic International, a producer of electronic parts and TV monitors.
The company reported a nine-month loss of 18.14 million baht on revenues of 56.3 million. Third-quarter losses totalled 15.34 million baht, compared with a profit of 1.15 million in the same period last year. The declines were attributed to higher rental and service costs, higher sales and administrative expenses and a 9.29- million-baht charge for doubtful debt.
Shares of Wyncoast (WIN) closed yesterday on the Stock Exchange of Thailand at 1.56 baht, up three satang, in trade worth 50.58 million baht.
Govt plans private involvement
Firms will be able to lease facilities to boost logistical efficiency, cut fuel costs
The interim government is planning to invite private-sector companies to lease the railways and ports to achieve greater logistical efficiency and reduce dependency on imported fuel, Deputy Prime Minister and Finance Minister MR Pridiyathorn Devakula said yesterday.
Speaking at an economic seminar organised by Thammasat University, Pridiyathorn said: "More ports and longer railway lines won't ensure efficiency in logistics operations if the management is not improved."
He said the government would, for instance, allow private companies to lease and construct container yards in ports and provide rail transportation services, especially on the route connecting the East to the South, to cut short the transport process.
He said the government was also considering whether Songkhla or Surat Thani would be the location for receiving goods from Laem Chabang.
A source said that the National Economic and Social Development Board (NESDB) and the Transport Ministry were working out the interim government's logistics plan, which will involve inviting the private sector to participate in logistic operations, especially the railways.
Under the plan, the State Railway of Thailand will build the railways and the private sector will be invited to lease and operate them.
However, the source said that the government may have to wait for the next fiscal year's budget to finance new investment after it introduces the logistics blueprint. The blueprint will be issued after the setting up of a National Logistics Committee.
Pridiyathorn, meanwhile, said the private sector's participation should help improve efficiency. At present, it takes two days to take products from a receiving point and load them into containers.
He said that along with the SRT's plan to expand rail routes, the government planned to concurrently develop maritime transport and link the railways and ports together.
Although government plans already exist for another two ports on the Gulf of Thailand, they won't ensure the improvement of logistics if the port and railway operations remain inefficient, he said.
Former commerce minister Narongchai Akrasanee said that to develop the country's logistics, the government should also go ahead with creation of the so-called "aerotropolis" surrounding Suvarnabhumi Airport to make the new airport the logistic centre of the region.
As for the planned construction of five new mass transit routes in Bangkok, Pridiyathorn said the government should be able to call for bidding and begin construction on three of the routes. The other two should be ready for bidding within the term of the interim government, but construction may start during the term of a new government.
Pridiyathorn said the electric railways should be ready for bidding soon because they required no further study. "We can't wait because these new lines will help ease Bangkok's population density by encouraging development to spread out along the routes."
The Finance Minister said the new government was also working to ensure good governance to attract foreign investors and economic growth. For instance, it is investigating allegations that the Small- and Medium-Sized Enterprise Development Bank of Thailand has extended unreasonable loans to the friends of its management.
Deputy Finance Minister Sommai Phasee has also been assigned to look into alleged irregularities in the Government Savings Bank's loan approvals and loans made by commercial banks to the Picnic Corporation.
However, SRT also has to deal with track rehab (rail replacement with 100 Lb/ yard rail, realignment, deeper/cleansed ballasting to allow 100-120 kph max speed) on the followign section
1) Phitsanuloke - Sila At - Ban Dan (Already Done)
2) Bangsue - Ban Chimplee (probably done)
3) Thung Song - Ban Ton Done (not started yet)
4) Kaeng Khoi - Bua Yai
5) Nakhon Ratchasima - Bua Yai
6) Bua Yai - Nong Khai
Now, the loco shortage is still plaguing SRT so SRT has to cancle Rapid 137/138 and Rapid 101/110 to enable SRT to put more carriages to Ubon line as well as more frequent container services ... esp the lien to Laem Chabang.
Now, the New SRT Board and Bangkok Biznews are investigating on the IRREGULAR Deal between SRT and Win Coast Industrial Park PCL ... whcih is about to be started in Jan 1, 2007 .... with at least 2 daily services betwen Map Ta Put and Laem Chabang
which can be described as follows:
Irregular deals with SRT - Another project to Award Thaksin's Cronies
Bangkok Biznews - Dec 18, 2006
New SRT Board and Bangkok Biznews are investigating on the IRREGULAR Deal between SRT and Win Coast Industrial Park PCL ... whcih is about to be started in Jan 1, 2007 ...
1) The deal has been awarded to Win Coast Industrial Park PCL without BIDDING
2) Win Coast is just hiring SRT to repared 2 decommissioned Locos instead of buying 2 new locos for logistic services between Map Ta Put and Laem Chabang
3) Instead of buying 50 new BCFs, WIn Coast is just leasing 50 old BCFs from SRT for the logistic matter.
4) Even though WIn Coast has promised to rehabilitated the track from Laem CHabang to Map Ta Put, so far they have NEVER started yet ...
5) Wincoast Industrial Park PCL has 2 subsidiaries with
5.1) Wincoast Logistics
5.2) WIncoast Transports
Miss Shinnicha Wongsawat, a niece of Ai Maew is runnign both subsidiaries ....
... and she allows Ms. Yaowapha Wongsawat (Ai Maew's Sister and Miss Shinnisha's Mother) to run the Board of DIrectors of WIn Coast.
6) Even though Win Coast is promising to pay SRT 3400-3500/BCFs/day, I afraid that Win Coast is goign to refuse to pay by claiming that they have paid SRT a lease of 50 BCFs at 2000 Baht/BCF/a day .... while they reap the benefit of 2860 Baht a day for themselves ....
I REALLY afraid that Katoen Natie (Thailand), is goign to use that Logistic Services from Win Coast Industrial Park ....so, just take into account.
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